#CEXvsDEX101 CEX (Centralized Exchange)**

→ **Examples:** Binance, Coinbase, Kraken.

→ **How it works:** Trades routed through a company’s internal order book. You deposit funds; the exchange holds your keys.

→ **Pros:**

- High liquidity & fast trades.

- Fiat on/off ramps (USD, EUR).

- Advanced tools (margin, futures).

→ **Cons:**

- Requires KYC (ID verification).

- Custodial risk (hacks, bankruptcy).

### **DEX (Decentralized Exchange)**

→ **Examples:** Uniswap, PancakeSwap, dYdX.

→ **How it works:** Peer-to-peer trades via smart contracts. You keep custody of assets (connect wallet like MetaMask).

→ **Pros:**

- No KYC (anonymous).

- Trustless (no intermediary).

→ **Cons:**

- Lower liquidity for altcoins.

- Complex for beginners.

- Slower & costlier (gas fees).

### **Key Differences**

| **Aspect** | **CEX** | **DEX** |

|------------------|--------------------------|-----------------------------|

| **Custody** | You surrender control. | You hold keys. |

| **Privacy** | KYC required. | Anonymous. |

| **Speed** | Instant settlement. | Blockchain speed (e.g., 12s-5min). |

| **Assets** | Fiat + crypto pairs. | Crypto-to-crypto only. |

> 💡 **When to Use**:

> - **CEX**: For beginners, fiat conversions, or high-volume trades.